AngloGold Ashanti expects to see an average 2.0% compound annual growth rate (CAGR) in gold production over the next two years relative to the 2020 production from continuing operations.
The primary driver of production growth is related to the revamped Obuasi mine operating at steady state, Tropicana reverting to normalised production levels following the reinvestment in its life extension, and AGA Mineração, Siguiri and Sunrise Dam expected to increase production to higher levels.
This is coming on the back of 160% increase in profit in 2020 to $946m, from $364m in 2019.
On a five-year indicative outlook, the Company expects to see an average of 5.0% CAGR in gold production between 2021 and 2025. This is underpinned by the company’s 10 operating assets, as well as the potentially moving forward with investments in the Quebradona and Gramalote projects.
As a result of these investments, total capital expenditure is expected to increase in 2022 to 2024, before declining.
Following the completion of these projects among others, the company is expected to be well positioned to operate between $900 – 1,150/ per ounce of gold – in nominal terms – in 2025.
The company per its Preliminary 2020 Result proposed a dividend of 48 US cents per share in 2020, from 9 US cents per share in 2019.
2020 Financial & Operating Performance
Production was 3.047 million ounces at a total cash cost of $819 per ounce in the 12 months to 31 December 2020, from 3.281 million ounce at a total cash cost of $776 per ounce in 2019.
The 7% reduction in production was due mainly to the sale of its remaining South African producing assets, the cessation of mining activities at Sadiola and Morila in Mali, and the impact of the COVID-19 pandemic.
The mining firm regrettably recorded six fatalities last year; four at Mponeng in South Africa and two at Obuasi.
However, it will implement an updated safety strategy across its business, with particular focus on the critical controls needed to eliminate what it call ‘high consequence, low frequency’ events.